The pound to Canadian dollar exchange rate has been struggling of late with the pound under pressure following the European elections and the uncertainty around who will be the next Conservative leader.
Loonie near 4 month highs against the pound
Expectations for the Canadian dollar have been slightly mixed, but with the US dollar performing well, expectations for the Loonie dollar have risen and it is winning against the pound.
The Canadian dollar is just 2 cents from the best time in 4 months to be selling for pounds and I think this presents a good opportunity for some planning. There is now a fairly strong chance sterling will remain in the firing line and should no-deal become more likely I believe the pound will suffer as a result.
Pound to Canadian dollar forecast
The next few weeks will be important as investors await the next key pieces of information from the market which will shape the behaviour for both the pound and the Canadian dollar. Notably there is a key concern over trade wars, plus the outcome on Brexit.
As these events shape themselves, the pound to Canadian dollar levels will swing and I expect rates will either dip below 1.70 or find themselves in the 1.60’s. There is a key concern over the outlook on the trade wars, but the market is awaiting further news regarding the US economy too. As the US economy is performing quite well, and the US Federal Reserve is keeping monetary policy very loose, investors are quite confident that the Canadian economy will avoid any major problems and will also keep growing.
Compared to the UK, this will put the Canadian economy I feel in a much stronger position and see the Loonie dollar remaining stronger against the pound. Expectations ahead for the GBP/CAD rate I feel seem set to the downside.
Ultimately, trying to predict the outcomes of these major events, Brexit and trade wars is no easy task. Therefore, if you have a transfer to make and wish to keep up with the latest news, please contact our team and we can offer assistance with the planning and strategy of any potential transfers.